Md. Code Regs. 05.04.12.07

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.04.12.07 - Contractor Requirements

A. Contractors and subcontractors shall meet the following requirements:

(1) Meet all applicable State and local licensing requirements.

(2) Provide insurance coverage for comprehensive public liability, property damage liability, and workers' compensation in form and amounts required by the Administration.

(3) Perform all work in a competent, workmanlike manner equal to the standards of the industry in conformance with the contract and applicable codes and standards.

(4) Comply with all applicable laws, ordinances and regulations relating to the protection and safety of persons and property.

(5) Furnish all labor, materials, and equipment, and obtain and pay for all licenses and permits required to rehabilitate or construct the project in accordance with the contract and the plans and specifications.

(6) Not assign the contract without the prior written consent of the sponsor and the Administration.

(7) In addition to all remedies and guarantees provided by law, make at its sole cost and expense all necessary repairs, replacements, and corrections of any nature or description, interior or exterior, structural or nonstructural, as shall become necessary by reason of faulty workmanship or material, which appear within a period of 1 year from the date that a certificate of completion, on the Administration's approved form, is filed with the Administration. However, if any longer guarantee period is specified for any particular materials or workmanship under plans and specifications, or under any subcontract, in connection with any manufactured unit which is installed at the project, or under the laws of the State, the longer period shall govern.

(8) Agree to complete all work specified in the construction contract or plans and specifications, as the case may be, by the date required.

(9) Indemnify and hold the Administration harmless from all liability and loss because of injury to or death of any person or damage to any property which may occur or be alleged to have occurred during performance of the contract as a direct or indirect result of any act or omission, whether intentional, negligent, or otherwise, by the contractor, subcontractor, or their agents and employees. The contractor shall defend all suits or claims at its sole cost and expense.

B. Sponsors may act as general contractors only with the prior written approval of the Administration. The Administration's approval will be granted only if, in the opinion of the Administration, the sponsor has the capacity and expertise to perform as general contractor as evidenced by prior completion of projects of comparable or greater size and type.

C. General contractors shall provide:

(1) Performance and payment bonds, each in an amount equal to 100 percent of the contract price;

(2) An irrevocable letter of credit equal to 25 percent of the contract price on assurance of completion agreement; or

(3) Other assurances as may be acceptable to the Administration.

Md. Code Regs. 05.04.12.07